Genomic Health (GHDX) announced its earnings a few days ahead of schedule because it had much bigger news to share with investors: The company is being acquired by Exact Sciences (EXAS -1.06%) for $72 per share, consisting of $27.50 in cash and $44.50 in shares of Exact Sciences stock that's subject to adjustment based on Exact Sciences' share price movement.

Genomic Health results: The raw numbers

Metric

Q2 2019

Q2 2018

Change

Revenue

$114.1 million

$95.6 million

19.4%

Income from operations

$15.5 million

$7.1 million

118%

Earnings per share

$0.42

$0.23

82.6%

Data source: Genomic Health.

What happened with Genomic Health this quarter?

U.S. revenue from the Oncotype DX Breast Recurrence Score tests was up 13.4% year over year, generating $82.2 million for the quarter. U.S. prostate test revenue was up a whopping 42.3% year over year, although that's working from a lower base and created just $9.6 million in revenue. International tests were up 27.7%, or 32.7% on a constant currency basis, to $18.1 million in the second quarter. Genomic Health made headwinds on reimbursement for its breast cancer test in Germany and Belgium and with private insurance in the U.S. for its prostate cancer tests.

Doctor working at a computer.

Image source: Getty Images.

What management had to say

CEO Kimberly Popovits talked about the benefits of the acquisition: "This combination provides significant and immediate cash value for our shareholders and with the stock component creates the opportunity to participate in the upside potential of the combined company. We have great respect for the Exact Sciences team, and we believe we have found a tremendous partner to advance our mission."

Popovits also highlighted the company's partnership with Biocartis to run Genomic Health's tests on Biocartis' Idylla systems:

It certainly opens up the global markets for us. With the announcement of the reimbursement decision in Germany, it's just a really incredible starting point to bring that platform to major markets in Western Europe, and we'll see how we can expand it from there. But also it could have implications for the future pipeline of the combination here.

Looking forward

After a strong first half of the year, management updated guidance and now expects revenue to grow 14% to 15% for the year, up from previous guidance of growth in the 11% to 14% range. Earnings are expected to be in the $1.44 to $1.54 per-share range, up from $1.23 to $1.38 per share.